25/09/25
• The Guidance (published 10 July 2020) defines a “virtual asset” along the lines of the FATF standard: a digital representation of value that can be traded or transferred, used for payment or investment-excluding fiat currency.
• Activities are regulated under several BVI laws: in particular, the Securities and Investment Business Act, 2010 (SIBA), the Financial Services Commission Act, 2001, and the Anti-Money Laundering Regulations, 2008, plus the AML & Terrorist Financing Code of Practice.
🔍 Analysis & comparison
• The regime resembles other jurisdictions trying to draw a line between utility tokens vs securities, similar in principle to the U.S. Howey test (rights, profit, reliance, expectation). While BVI does not replicate the same test, its emphasis on rights, returns, and structure echoes that approach.
• Unlike some jurisdictions with crypto-specific laws, BVI relies on adapting existing financial services/securities / AML laws to cover virtual assets. That means a great deal rests on how token offerings are structured and documented.
• Because many virtual asset activities (custody, exchanges, investment advice) are now expressly included under SIBA, there is more legal certainty, but also more compliance burden (licensing, AML, due diligence).
💡 Practical examples & sector-impact
• A company wanting to launch an ICO in the BVI that grants token holders profit shares or voting rights will almost certainly be subject to SIBA. It must prepare to register or obtain licenses.
• A firm offering wallet services or custody for virtual assets deemed “investments” will need proper licensing under Schedule 2 of SIBA and must establish robust AML/CTF procedures.
• Contrast: a project issuing a purely utility tokenmay fall outside the regulated scope, but legal counsel should verify features carefully, because small variations in token design can tip regulatory treatment.
✅ Conclusion
What matters is how the virtual asset is defined, what rights it gives to holders, and what business activities are carried on. Entities must assess tokenomics, structure and operations to determine whether SIBA, AML, or related laws apply.
If you are considering forming a crypto-company in BVI or adjusting your token structure, you need a careful legal roadmap. Contact NUR Legal to navigate regulatory risk, ensure compliance, and maintain the confidentiality rights you need. Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com
#CryptoRegulation #BVI #VirtualAssets #CompanyFormation #SecuritiesLaw #AML #FinancialServices #TokenIssuance #LegalRisk #Compliance
Emil Korpinen